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fomenos
3 years ago
10

Hooper Printing, Inc. has a bond issue outstanding with 14 years left to maturity. The bond issue has a 7% annual coupon rate an

d a par value of $1,000, but due to changes in interest rates, each bond's value has fallen to $749.04. The capital gains yield earned by investors over the last year was 25.10%. What is the expected current yield for the next year on this bond issue
Business
1 answer:
lord [1]3 years ago
6 0

Answer:

9.35%

Explanation:

Annual coupon amount = Coupon rate × Fave value of bond = 7% × 1,000 = $70.

Expected current yield = Annual coupon amount ÷ Current market price per bond = $70 ÷ $749.04 = 0.0935, or 9.35%.

Therefore, the expected current yield for the next year on this bond issue is 9.35%.

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The outstanding bonds of Winter Time Products provide a real rate of return of 3.00 percent. The current rate of inflation is 2.
Delicious77 [7]

Answer:

The nominal rate of return on these bonds is 5%

Explanation:

The Formula for the Real Rate of Return is

Real rate of return =Nominal interest rate - Inflation rate

So,  

Nominal interest rate=Real rate of return+Inflation rate

Nominal interest rate=3%+2%

Nominal interest rate=5%

4 0
3 years ago
The average propensity to consume is the: ratio of consumption to income. amount consumed out of an additional dollar of income.
Arlecino [84]

Answer:

The correct answer is: ratio of consumption to income.

Explanation:

The average propensity to consume is a measure to show the percentage of income that is spent on consumption of goods and services. It is calculated by the ratio of consumption and income.  

It can also be calculated as 1 - APS. Here, APS is the average propensity to consume which is the ratio of savings to income.

4 0
3 years ago
Burnett Corp. pays a constant $8.25 dividend on its stock. The company will maintain this dividend for the next 13 years and wil
Valentin [98]

Answer:

$55.134

Explanation:

Given

dividend paid on its stock = $8.25

Duration is next 13 years

P0 = dividend on its stock × (PVIFA of return on this stock,years)

Remember PVIF = (1 - (1 + r)^-n)/r

Where PVIFA = present value interest factor of annuity

r = interest rate per period

n = number of periods

Therefore

P0 = $8.25 × (PVIFA11.2%,13)

P0 = $55.134

6 0
3 years ago
Read 2 more answers
Which of these may be integrated with an electronic stability control (ESC) system
gulaghasi [49]

Answer:

ESC also integrates all-speed traction control, which senses drive-wheel slip under acceleration and individually brakes the slipping wheel or wheels, and/or reduces excess engine power, until control is regained.

Explanation:

(you never said the answer choices)

8 0
2 years ago
During the "design" step of appreciative inquiry, participants ________.A) find a common vision of how the organization will loo
Mila [183]

Answer:

The correct answer is A) find a common vision of how the organization will look in the future

Explanation:

4 0
3 years ago
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